A potential U.S.-listed exchange-traded fund (ETF) offering exposure to staked Injective (INJ) tokens has gained traction, as asset manager Canary Capital created a Delaware trust for this purpose.

Canary Capital established the entity “Canary Staked INJ ETF” in Delaware, according to filings on the state’s Division of Corporations website. This Monday’s formation appears to be the firm’s initial step towards launching the fund.

Regulatory Steps for Crypto ETFs

Creating a Delaware trust is typically the preliminary filing required before the subsequent application process for an ETF listing with the U.S. Securities and Exchange Commission (SEC).

While a Delaware trust filing does not guarantee an ETF launch, several cryptocurrency-tracking exchange-traded products have historically followed this route.

Alongside the INJ trust application, Canary Capital has also filed for an ETF focused on the Tron (TRX) blockchain token. According to Canary, this product would involve staking a portion of the tokens.

Similarly, 21Shares previously introduced a staked INJ ETN (exchange-traded note) in the European market, highlighting the growing trend of providers fetching staking yields for crypto-based products.

Canary Capital has not yet provided details regarding its proposed INJ fund and declined immediate comment.

Market Reaction

The creation of the Delaware entity contributed to a 3.7% price increase for the INJ token within the last 24 hours. The blockchain’s official X account announced the trust development.

Broader market indicators suggest ongoing investor interest. DappRadar data reveals INJ saw a weekly increase of over 10.5%—a notable rise accompanied by higher transaction volumes and user engagement on supported applications.

SEC Skepticism on Staking ETFs

Filed in the context of the current U.S. regulatory environment, Canary’s trust registration coincides with statements suggesting a Trump administration might ease crypto regulations.

However, significant hurdles remain. The SEC has previously expressed concerns regarding the legal viability of crypto staking ETFs under U.S. securities law, potentially constraining broader crypto market access.

Analysis points towards the possibility of regulatory resolution, though concerns over investment company definitions continue to surface and require careful navigation by fund issuers.